Indian economy forecast to grow between 6.75 to 7.5 pct next fiscal year

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India Tuesday released its Economic Survey, predicting a slump in the economic growth this fiscal year due to demonitization, while projecting a growth rate between 6.75 percent and 7.5 percent in the next fiscal year beginning on April 1.

The country’s economy had grown at 7.6 percent in 2015-16 and at 7.2 percent in 2014-15. And if it grows at the lowest band at 6.75 percent, it will be the lowest in recent years.

On the price front, the Economic Survey, which was tabled in the Indian Parliament, says that the CPI remained under control for the third successive financial year.

But it said that the growth rate of the industrial sector will be 5.2 percent in 2016-17 from 7.4 percent in 2015-16, while the service sector is estimated to grow at up to 8.9 percent in 2016-17.

The survey also spoke of the need for the concept of Universal Basic Income (UBI) as an alternative to the various social welfare schemes in a bid to reduce poverty. “The more efficient way to help the poor would be to provide them resources directly, through a UBI,” it said.

A flagship annual financial document of the Indian Finance Ministry, the Economic Survey reviews the developments of the Indian economy over the past one year. Enditem